fnsacc416 set up & operate a computerised accounting...

FNSACC416

Set Up & Operate a Computerised Accounting System User Guide

ISBN Number: 978-1-925782-94-3

Part Number: 416

Version: V18.4 2017

AUTHOR – Kerryn Maguire

Kerryn has been working with accounting software products for over twenty years. Originally working from 1994 as an accountant with small business when accounting software became mainstream. Kerryn then focused on providing consulting and training services to small business in particular. Expanding from this into to providing curriculum based resources to TAFE and private RTOs. From this she established Microstar Publishing and more recently incorporated OfficeLink Learning to provide a wide range of resources for the Accounting and Business Services Certificate courses. Kerryn has a long association with many TAFEs and RTOs across Australia. Kerryn’s fundamental aim is to provide resources that are easy to understand while providing a practical application of skills acquired. Kerryn also co-authors two titles for Cambridge University Press which are in their 4th Edition – first published in 2000. Kerryn has considerable experience and knowledge:

Bachelor of Applied Science Mathematics Diploma of Education Graduate Diploma of Accounting CRI: Criterion Referenced Instruction Member of Institute of Certified Bookkeepers Member of VELG

Reproduction and Communication for educational purposes

The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this publication, whichever is greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given remuneration notice to the Copyright Agency Limited (CAL) under the Act. For details of the CAL license for educational institutions contact:

Copyright Agency Limited Level 15 233 Castlereagh Street Sydney NSW 2000 Telephone: (02) 9394 7600 Facsimile: (02) 9394 7601 Email: [email protected]

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All Rights Reserved

© Copyright 2018 OfficeLink Learning Version 18.4

This user guide is based on the user guide V17.5.19.11 and updated to use AccountRight Plus

2017.1.1

No part of the contents of this book may be reproduced or transmitted in any form or by any

means without the written permission of OfficeLink Learning. All registered trademarks or service

marks are the property of their respective owners.

While care has been taken in the preparation of this Training Tool, OfficeLink Learning, the

developers do not accept any liability for any damage or loss (including indirect and

consequential loss) incurred by any person as a result of relying on the information contained in

this material. This tool should not be regarded as professional advice and it should not be relied

upon in any important matter without obtaining appropriate advice relevant to your situation.

It is the Registered Training Organisation’s responsibility to validate the mapping of this tool to

the performance criteria.

Trademarks and Acknowledgements

All terms or products mentioned in this manual that are known to be trademarks have been

acknowledged. OfficeLink Learning cannot attest to the accuracy of this information. Use of a

term in this manual should not be regarded as affecting the validity of any trademark.

Software Description

This course has been designed for users of the MYOB product AccountRight Plus AU (Education)

2017.1.1.

Mac users will need to install and use ‘Parallels’ or similar software, i.e. an emulator installed to

allow the Mac to run PC programs.

The case study in this material uses fictional information.

Accredited MYOB Publisher

OfficeLink Learning has been accredited by MYOB as a Publishing Partner. We have met the

selection criteria to hold this status.

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Contents

© Copyright 2017 OfficeLink Learning iii

Contents Unit 1 Introduction .................................................................. 1 Purpose of this User Guide ...................................................................... 1

Accounting software used ....................................................................... 2

Prerequisites ....................................................................................... 2

Delivery ............................................................................................. 2

Duration ............................................................................................ 2

Relationship to Competency Standards ....................................................... 3

What you will need ............................................................................... 3

Conventions used in this User Guide ........................................................... 4

Symbols used in this User Guide ................................................................ 5

Installing AccountRight Plus 2017.1.1 on a Windows PC .................................... 6

Unit 2 Introducing AccountRight ................................................ 13 What is bookkeeping? .......................................................................... 14

Functions of bookkeeping ..................................................................... 15

Bookkeeper’s responsibility ................................................................... 15

Accountant’s responsibility ................................................................... 17

Bookkeeping terminology ...................................................................... 18

Desktop or Cloud Based Accounting ......................................................... 18

Double Entry Accounting (Debits and Credits) ............................................. 19

A Double-sided Entry ........................................................................... 20

Chart of Accounts ............................................................................... 20

Goods & Services Tax .......................................................................... 23

Cash versus Accrual Accounting .............................................................. 24

Methods of reporting GST ..................................................................... 24

Reference websites ............................................................................. 25

Source documents .............................................................................. 25

Starting AccountRight .......................................................................... 27

The Command Centres ......................................................................... 30

The Accounts List ............................................................................... 33

The Action Panel ................................................................................ 34

Run a Payroll Report ........................................................................... 34

Using the Help Centre .......................................................................... 38

MYOB Support Services ......................................................................... 39

Exit AccountRight ............................................................................... 43

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Contents

iv © Copyright 2017 OfficeLink Learning

Unit 3 Creating a Company File .................................................. 45 Requirements for setting up a company file ............................................... 46

Case Study ....................................................................................... 46

Creating a company file ....................................................................... 50

Setting preferences ............................................................................ 56

Tax codes ........................................................................................ 58

Close a Company File and MYOB AccountRight ............................................ 60

Start MYOB AccountRight and Open a Company File ...................................... 60

Back Up and Restore ........................................................................... 62

Unit 4 Working with the Accounts List ......................................... 65 The Accounts List ............................................................................... 66

Account Types and Levels ..................................................................... 66

Changing account details ...................................................................... 69

Change an Account Number................................................................... 71

Assign Tax Code to an Account ............................................................... 72

Creating an account: Header account ....................................................... 74

Create a Detail Account ....................................................................... 75

Moving accounts to different levels ......................................................... 76

Deleting an account ............................................................................ 78

Linked accounts ................................................................................. 80

Entering account opening balances .......................................................... 82

Print a Trial Balance ........................................................................... 86

Linked Account Report......................................................................... 87

Unit 5 Setting Up Card File Records ............................................ 89 Types of Cards .................................................................................. 90

Create Cards .................................................................................... 91

Customer Credit Terms and Limit ............................................................ 94

Search and Find ................................................................................ 105

Deleting a Card ................................................................................ 106

Privacy and Data Breaches ................................................................... 107

Entering historical balances for Sales: Trade Debtors ................................... 109

Entering historical balances for Purchases: Trade Creditors ........................... 112

Use Business Analysis for Customer and Supplier Analysis .............................. 115

Unit 6 Creating Items ............................................................ 117 Overview ........................................................................................ 118

Creating an inventoried item ................................................................ 119

Creating non-inventory items ................................................................ 124

Search and find items ......................................................................... 126

Entering inventory opening balances ....................................................... 127

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Contents

© Copyright 2017 OfficeLink Learning v

Unit 7 Initial Bank Reconciliation ............................................. 133 Overview ........................................................................................ 134

Performing an initial bank reconciliation .................................................. 135

Unit 8 Spend Money .............................................................. 141 Banking preferences ........................................................................... 143

Enter payments through Spend Money ..................................................... 144

Enter a BPay payment ......................................................................... 147

Enter a Payment with Credit Card Account ............................................... 150

Purchase an Asset .............................................................................. 152

Transfer Funds between Accounts .......................................................... 153

Entering a Recurring Payment using Spend Money ....................................... 154

Using a Recurring Payment ................................................................... 156

Prepayments .................................................................................... 157

Viewing transactions in the Bank Register ................................................. 160

Viewing transactions in the Transaction Journal ......................................... 161

Unit 9 Sales and Receive Money ............................................... 163 Cash Sales receipts using Receive Money .................................................. 164

Overview of Invoiced Sales ................................................................... 166

GST and Invoices ............................................................................... 166

Payment Considerations ...................................................................... 167

Attributes of Invoices and Tax Invoices .................................................... 168

Bookkeepers’ Code of Ethics ................................................................. 169

Sales Transaction .............................................................................. 169

Sales Layouts ................................................................................... 170

Creating a Service Invoice .................................................................... 172

Creating a Service Invoice paid COD ........................................................ 175

Create an Item Invoice ........................................................................ 177

Create an Invoice for Inventoried Items ................................................... 179

Receive Payments on Invoices ............................................................... 180

Receive a Payment Direct to Account ...................................................... 183

Check Accounts Receivable .................................................................. 184

Prepare a Bank Deposit ....................................................................... 185

Unit 10 General Journal Entries ................................................ 193 Overview: General Journal entries ......................................................... 194

Add a New account to the Accounts List ................................................... 194

Entering a General Journal entry ........................................................... 195

View the accounts for the Reallocation .................................................... 196

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Contents

vi © Copyright 2017 OfficeLink Learning

Entering a General Journal for Period End Adjustment ................................. 197

View the accounts for the Reallocation .................................................... 199

Print a list of General Journals .............................................................. 200

Unit 11 Bank Reconciliations .................................................... 201 Reconciliation .................................................................................. 202

Add a Bank Fee ................................................................................ 204

Print a Bank Reconciliation Report ......................................................... 205

Unit 12 Petty Cash .................................................................. 211 Petty Cash Overview .......................................................................... 212

Petty Cash Documents ........................................................................ 213

The Petty Cash Account ...................................................................... 217

Entering a Cheque for Petty Cash ........................................................... 218

Enter Petty Cash Entries Using Spend Money ............................................. 220

Reconcile Petty Cash .......................................................................... 225

Unit 13 Reports ..................................................................... 229 The Balance Sheet Report .................................................................... 230

Report Customisation ......................................................................... 232

Print a Trial Balance Report ................................................................. 234

Print a Profit and Loss Report ............................................................... 236

Saving report filters and settings ........................................................... 238

GST reporting .................................................................................. 241

Print a GST [Detail – Cash] Report .......................................................... 242

Print a GST [Detail - Accrual] Report ....................................................... 243

Difference between Cash and Accrual GST Reports ...................................... 244

Complete the ATO Calculation Worksheet ................................................ 245

Transfer Values from Worksheet onto BAS ................................................ 247

Use Spend Money to record the payment .................................................. 249

Unit 14 End of Financial Year .................................................... 253 End of Financial Year overview ............................................................. 254

End of Financial Year rollover ............................................................... 254

Backup before end of year adjustments ............................................... 255

Reconcile Bank Accounts ................................................................. 255

Reconcile Accounts Receivable .......................................................... 256

Reconcile Accounts Payable ............................................................. 257

Reconcile Inventory ....................................................................... 258

Reconcile GST control accounts ......................................................... 259

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Contents

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Print reports for accountant ............................................................. 262

Enter year-end adjustments from accountant ........................................ 263

Back up your company file ............................................................... 263

Close a financial year ..................................................................... 264

Check the current financial year of your company file .............................. 268

Unit 15 Consolidation Exercise .................................................. 269 Appendix A Tax Codes ........................................................... 297 Appendix B Mapping Matrix .................................................... 299 Appendix C ATO Calculation Worksheet for BAS ........................... 301 Appendix D ATO Business Activity Statement .............................. 303 Appendix E Solutions to Exercises ............................................ 307

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Creating a Company File

© Copyright 2017 OfficeLink Learning 45

Unit 3


Lesson outcomes

In this unit you will learn how to:

list requirements for creating a company file

create a company file

set preferences in the company file

view tax codes

create a back up

restore a back up

access the ATO website.

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46 © Copyright 2017 OfficeLink Learning

Requirements for setting up a company file

A company file is the term used in AccountRight software to name a company’s data file. Before you create a company file you need to have the following information:

• Company details such as name, address, ABN and phone number

• Your current financial year and the last month of the financial year

• The conversion month – this is the month when you plan to start using AccountRight. This month is important for the opening balances that will be entered during the company file setup. Examples include bank account balance, debtors and creditor aged balances.

• A list of all the accounts can be generated by AccountRight based on templates or you can build your own, for example, Assets and Liabilities.

Case study overview (policy and procedures)

Charlies Cleaning is a small cleaning business whose main services are general, window, carpet and floor cleaning. It sells window, carpet and stain remover products as well.

Charlie Sparkle started this business in July 2017; however, she has decided to commence the company file on 1st January 2018 as the previous six months have been recorded manually. We are therefore working in financial year 2018 which finishes in June 2018.

You may nominate a more current financial year, just bear in mind that screen shots and reports in this text use the financial year 2018.

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Company details

Charles Cleaning has an ABN and is registered for GST reporting quarterly on a

non-cash basis. The business reports income tax on an accrual basis and does

not take advantage of the small business income tax concessions.

GST Legislation

When updating the chart of accounts, you may be required to link the

accounts to tax codes. You are to access this information from the ATO

website or the Company Accountant to ensure that the legislation is

interpreted correctly.

You are required to use the AccountRight Invoice and Purchase order

templates for the respective transactions as these are designed taking into

consideration GST legislative requirements.

Timeframe

• All historical data should be entered as 2017.

• All actual transactions should be entered from 01/01/2018.

Please note that when entering future dates, a warning message appears

advising that the date entered is after the current date.

You can just click on the x to close the message and the remains next to

the date box. This can be ignored.

Inventory

Perpetual inventory is used for all stock. An item card is set up for each stock

item. Minimum numbers are entered to optimise stock levels and assist with

automatic reordering of stock. There are no standard re-order quantities.

The inventory ledger should be reconciled with the balance sheet control a/c

at the end of each month by printing the inventory value reconciliation report.

Any discrepancies should be identified, and an appropriate adjustment made.

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Purchases

Where ever possible bills that can be aged for payment are to be processed via this accrual payment method. 1. Every purchase for inventory must be recorded in MYOB AccountRight by

using a supplier card.

2. Orders are generated automatically or keyed in and then printed or emailed to the supplier for inventory purchases.

3. A copy of the purchase order is sent to the “goods inwards” section. Each purchase order will be numbered consecutively in MYOB AccountRight and missing purchase order numbers must be accounted for.

4. The purchase order must contain a complete description of the goods ordered and the price including GST, plus the delivery address and any special delivery instructions.

5. When goods are received, the store person must check that the goods are in good order and condition. Goods must be checked against the purchase order to make sure the correct goods and quantity have been delivered. If a packing slip or delivery note was sent with the goods, this must be attached to the purchase order and forwarded to the accounts department. If no packing slip was received, a “goods received” slip must be completed and signed and attached to the purchase order.

6. Any discrepancies in the order must be attended to immediately by the bookkeeper after checking the tax invoice with the purchase order and goods received slip or packing slip.

7. If goods are to be returned for any reason, a “goods returned” slip should be completed and forwarded to the accounts department for entry into MYOB AccountRight.

8. Should there be goods on backorder; a copy of the purchase order must be kept in the store noting the goods on backorder. When goods are received, the purchase order is then forwarded to the accounts department.

9. Any invoices received with the goods (irrespective of whether a purchase order was created) must be forwarded to the accounts department immediately. It is the responsibility of the accounts department to check the prices on the tax invoice, terms of payment and any calculations.

The tax invoice is then attached to the purchase order on file together with the delivery note or goods received note as proof of delivery of the goods. The purchase order in MYOB AccountRight should then be changed to a “bill”; at the same time checking prices, the invoice total, terms of payment and entering the supplier’s tax invoice number and invoice date.

10 A physical stock take is conducted to check on the accuracy of stock numbers in the company file.

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Reconciliations

1. At the commencement of the company file the following accounts are to be reconciled and any discrepancies are to be reported to the Accountant for further instructions:

• Bank Account • Debtors • Creditors • Inventory • GST accounts

2. As a minimum, the Balance Sheet and Trial Balance reports must be sent to

the Accountant at the commencement of the company file and at the end of each month.

3. When instructions are received from the Accountant to enter adjusting

journal entries, they must be recorded promptly. A Trial Balance should then be printed and sent to the Accountant for approval.

Source Documents

All source documents are to be filed in arch lever folders in alphabetical order for future reference. When source documents are processed into MYOB AccountRight a stamp ‘entered’ should be used to identify it has been processed. Backup and Restore

1. When backing up your company file ensure that it is backed up onto an external device, e.g. a USB stick. It must be named ‘Charlies cleaning date month and year’, e.g. Charlies Cleaning 010118.

2. You are not allowed to restore any company files without the Accountant’s

permission.

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Creating a company file

1. Double-click the AccountRight icon on the desktop. The Welcome window appears.

2. Click Create a company file

The New Company File Assistant window appears.

3. Click on the drop list button and click on AccountRight Plus to indicate the software you are using then on Australia. Click Next to continue.

Create a new company file

If AccountRight is already running just click on File New File in the Menu

bar to create a new company file

AccountRight Plus

Australia

Next

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The Company Information window appears.

4. Enter the following company information into the fields provided:

Serial Number Check if you have a serial number

Company Name Charlie’s Cleaning

A.B.N. 34670309989

Address 11 Angel Street Melbourne VIC 3000

Phone Number 03 9222 1111 Fax Number 03 9222 1112

Email Address [email protected]

Your window should look like the following:

5. Click Next.

If you purchased an Education version of AccountRight, you will have a serial number for your own use that will enable you to create 5 different files. You can use the company file without a Serial number for 30 days.

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The Financial Year window appears.

6. Ensure the following settings are entered:

You may nominate a more current financial year, just bear in mind that screen shots and reports in this text use the financial year 2018.

Current Financial Year 2018

Last Month of your Financial Year

June

Your financial year is July 2017 to June 2018

Conversion Month January - this is the month you wish to start recording transactions

Your window should look like the following:

7. Click Next.

2018

June

January

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Working with the Accounts List


Unit 4


Lesson outcomes

By the end of this unit you will be able to:

set up the Accounts List

list account types

change account information

create header and detail accounts

move accounts

delete accounts

edit and delete linked accounts

enter account opening balances

print a Trial Balance report

view a Linked Accounts report.

NOTE: If you do not have a MYOB Student serial number you can use the

Charlies Cleaning SUA v2017 2018.myox file from this point onwards to

overcome the limitation of the 30-day trial period. Instructions on how

to download this file are provided in Unit 1.

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The Accounts List

An Accounts List contains a list of all the accounts required to record, track, organise and report on your company’s financial activity.

Account classifications In AccountRight, accounts are grouped into eight different classifications. Each account has a prefix which denotes the account classifications (we will look at six of the Account Groups):

Prefix Account Classifications

Description Examples

1-0000 Asset Items owned by the business

Cash at bank, debtors, motor vehicles

2-0000 Liability Items owed by the business

Creditors, Visa, bank loans

3-0000 Equity The owner’s share in the business

Capital, drawings

4-0000 Income Money earned from sales

Sales, service income

5-0000 Cost of sales Costs associated with producing a product

Raw materials, labour costs

6-0000 Expense Costs to run your business

Wages, advertising, rent, stationery

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Understanding account types

Accounts are either header or detail accounts:

• Header account – used to enter headings and they are non-postable which means that this account will not accept figures from transactions. It will subtotal the detail accounts from underneath it. Header Accounts are displayed in bold type in the Accounts List, e.g. Current Assets, Income.

• Detail Account – these accounts are listed under the Header Account and can accept figures from transactions, e.g. Advertising, Bank Charges.

Account levels The AccountRight Accounts List also contains four levels. These levels show which accounts belong to which header account. Header accounts appear in bold.

Below is an example from an Expenses tab from an Accounts List showing how the levels appear and how balances affect the totals of each.

6-0000 Expenses 70,000.00 70,000 1

6-1000 Admin Expenses 20,000.00 20,000 2

6-1100 Accounting 6,000.00 6,000 3

6-1200 Office Supplies 10,000.00 10,000 3

6-1300 Postage 4,000.00 4,000 3

6-2000 Operating Expenses 40,000.00 40,000 2

6-2100 Telephone 8,000.00 8,000 3

6-2200 Cleaning 2,000.00 2,000 3

6-2300 Rental Costs 30,000.00 30,000 3

6-2310 Rental Store 101 15,000.00 15,000 4

6-2320 Rental Store 109 15,000.00 15,000 4

6-3000 Advertising 10,000.00 10,000 2

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Activity task

1. Click on Accounts in the Command Centre and click Accounts List.

2. Which header account would include a total value for GST collected and

therefore owed to the ATO?

.................................................................................

3. Which three detail accounts appear under 4-0000?

.................................................................................

.................................................................................

.................................................................................

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Changing account details

Information such as account name, type, account number and tax code can be changed. Accounts can also be moved to a different level.

Change an account name

When Charlies Cleaning company file was set up a set of accounts was selected to automatically create the many accounts required in general. This Accounts List needs to have some existing accounts changed or deleted to meet the specific needs of Charlies.

1. Click on Accounts in the Command Centre and click Accounts List.

2. Click the Asset tab.

3. Click on the Zoom arrow for the item 1-1110 Business Bank Acct #1

4. Click into the Account Name box at the start of the text and type NAB Cheque Account.

5. Click OK.

Your window should now look like the following:

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To set up AccountRight software to pay bills or payroll electronically

If you wish to use an electronic payment method to pay suppliers and employees, you need to set up the company’s bank account information. You can pay electronically from multiple bank accounts.

1. Double-click the NAB Cheque Account. The Edit Accounts window opens.

2. Click the Banking tab.

3. Enter the details as shown in the following window:

4. Click OK.

Banking

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Change an account number

When you change an account number, all entries that have ever been entered will change too, e.g. change the 6-6400 Motor Vehicle Maintenance to 6-6350:

1. Click on the Expense tab if it is not selected

2. Scroll down and click on the account 6-6400 Motor Vehicle Maintenance

3. Click the Zoom arrow or the Edit button to display the Edit Accounts window.

4. Update the Account Number to be 6-6350. Your window should look like the following:

5. Click the Details tab and check that the tax code is GST.

6. Click OK to save your changes.

Details

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Assign Tax Code to an Account

It is important to check and assign Tax codes to accounts so that the GST or whichever tax is appropriate is calculated and accounted for. Then, when you come to do reporting on GST and other taxes, most of the work is already done for you.

1. Click on the Expense tab

2. Click the Zoom arrow for 6-1100 Accounting/Bookkeeping Fees

3. Click the Details tab

4. Check that the tax code is GST

5. If a tax code needs to be changed, click on the drop-down list button , select the correct code and then click on Use Tax Code.

6. Click OK to return to the tax code list.

Further information about tax codes, including when they should be used can be found in Appendix A and the ATO website: www.ato.gov.au.

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http://www.ato.gov.au/

Setting Up Card File Records


Unit 5


Lesson outcomes


create a Card

create profile information

set selling information

set credit and tax terms

set payment details

delete a card

enter sales and purchase opening balances

use the Business Insights customer and supplier analysis.

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Overview

The Card File is a database that stores information about your customers, suppliers and employees.

When you create a card, you can enter information such as contact details, record notes, attach a salesperson, credit terms and tax terms. When you choose a card in a transaction, the information stored within it is automatically retrieved, helping speed up your data entry.

Tip: You can synchronise your AccountRight cards and your Microsoft Outlook contacts. If your business uses Microsoft Outlook to email and manage contact information, this will make it easier for you to keep both your AccountRight cards and your Outlook contacts up to date.

Types of cards

• Use Customer cards to complete sales quotes, orders and invoices.

• Use Supplier cards to complete supplier quotes, purchase orders and bills.

• Use Employee cards to store information about the payroll information of your employees.

This is an example of a Customer card; it is set up like a manual filing card.

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Creating a customer card

In the following example, we are going to create a customer card for Stevenson & Co.

1. Click the Card File Command Centre.

2. Click Cards List.

The Cards List window appears.

3. Click the New button to display the Card Information window, which is arranged into a series of tabs:

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Setting profile information

4. Check the Profile tab is displayed and enter the following information in the customer card pressing the TAB key to move from box to box

Field Detail Note

Card Type Customer

Designation Company

Name Stevenson & Co

Card ID CUS001 Maximum of 15 characters

Location Address 1: Bill To

Address 1 Railway Rd Maximum of 5 addresses

City Camberwell

State VIC Maximum of 30 characters

Postcode 3124

Phone #1 03 9888 1111 Maximum of 3 phone numbers

Email [email protected] Email button allows you to send a message directly from AccountRight to your contact. (maximum of 26 characters)

www www.stevenson.com.au Maximum of 26 characters

Contact Andrew Stevenson

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Action Panel

When you have completed the customer’s profile, your window should look like the following:

5. Click the Selling Details tab on the card for Stevenson & Co.

Selling information

Credit Terms

Tax information

A/R Balances

Click here to view the credit limit

Selling Details

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Credit Limit

Credit Terms

Tax Details

Sales Details

6. Enter the following details on the Selling details tab:

Sales Layout Item

Printed Form Plain Paper Invoice

Income Account 4-2100 Window Cleaning

Sale Comment We appreciate your business

A.B.N. 55526226584

7. Check the following credit limit amount and tax codes are entered:

Credit Limit $5,000

Tax Code GST

Freight Tax Code GST

Enter the customer credit terms

The credit terms should be entered automatically as they were set in preferences in Unit 3.

8. In the Payments is Due field, ensure In a Given No. of Days is selected.

9. In the Balance Due Days field, check that 14 is entered. This means that Stevenson & Co must pay within 14 days from the date of the invoice.

When you have completed the selling details, the card should look like this:

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Change the Credit Limit for a Customer

The Credit Limit for Stevenson & Co is the set at the default amount of $5,000.00 so we did not have to change it. Remember the default amount was set in Preferences in Unit 3.

However, there may be a time when a different limit is required:

1. Click the Credit Limit & Hold button.

This is where you can set a limit of credit sales specific to a customer.

2. Click on Cancel to leave the details as they are.

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Setting Payment Details

In this example, Stevenson & Co have stated that they want to use their VISA card to pay for most of their purchases from Charlies Cleaning.

1. Click the Payment Details tab of the Stevenson & Co card

2. Enter the following payment details:

Payment Method Visa

Card No. (4 last digits) 3333

Name on Card Andrew Stevenson

Once you have entered this information, your window should look like this:

3. Click OK to return to the Card list

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Sales and Receive Money


Unit 9


Lesson outcomes

In this unit you will cover the following:

Use Receive Money to enter cash sales receipts

Read about GST and sales invoices

Read about invoices and tax invoices

Create a sales invoice

Create an item invoice

Create an inventoried item invoice

Receive Payments from Customers

Analyse Receivables

Prepare a Bank Deposit

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Cash Sales Receipts using Receive Money

In the following example, Charlies Cleaning need to record their weekly cash sale amounts from a cash drawer, into their AccountRight software. This time we will use the Bank Register to perform this task.

1. Click on Receive Money in the Banking Command Centre

2. In the Account field of the Bank Register window check that 1-1110 NAB Cheque Account is selected.

3. In the Date field, enter 7/1/2018 and TAB

4. In the Card field, click the search icon , click on New button and create a new Customer card with Name of Cash Sales click on OK

5. In the Amount received field, enter 124.50 and TAB.

6. TAB again in the Account field and double click on 4-1200 Chemical Products and TAB

7. Check the tax code is GST.

8. In the Memo field, enter Cash Sales for 1/1/18 to 6/1/18.

Your window should now look like the following:

11. Click Record. Click Cancel to return to the Banking Command Centre.

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Activity: Enter Cash Sales Receipts via Bank Register

Record the following Cash Sales Receipts and allocate them to

4-1200 Chemical Products.

No: next #

Date: 15/1/2018

Card: Cash Sales

For: 7/1/18 – 15/1/18

Amount: $1500.00 (inc GST)

No: next #

Date: 22/1/2018

Card: Cash Sales

For: 16/1/18 – 22/1/18


No: next #

Date: 28/1/2018

Card: Cash Sales

For: 23/1/18 – 28/1/18


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Overview of Invoiced Sales

The three types of sales transactions that can be entered into AccountRight are Quotes, Orders and Invoices. These transactions are entered through the Sales Command Centre. Before you record any sales transactions, let’s look at the government’s rules on GST and Invoices.

GST and Invoices

Cash or Accrual Reporting

As of 1 July 2010, major changes came into action in the GST system regarding invoices. Invoices are an integral part of the GST system. A GST registered entity is only entitled to claim a GST credit if it is in a possession of a valid tax invoice at the time it lodges its Business Activity Statement (BAS). As well as being in possession of a valid tax invoice, the rules for attributing GST collected and GST credits to a period depend on whether your account for GST on a cash or accruals basis.

When you report GST on a Cash basis, the business must pay tax in the tax period in which it pays for its purchases. If it pays only part of the cost of a business purchase in a tax period and has a valid tax invoice, it will only be able to claim GST credits for the part payment made in the tax period. The business must hold a copy of a valid tax invoice and only claim the GST amount listed on the tax invoice. The same applies on the sale side.

When you report GST on an Accruals basis, this means your account for the GST when the invoice is issued or when you receive payment for the goods or services sold. Similarly, GST payments made on purchases can be claimed if a tax invoice is issued. You can only claim the credit on purchases if the tax invoice is received at the time of lodging the Business Activity Statement.

This means the actual date of issuance for an invoice is when it is sent for example when it is:

• Electronically transmitted

• Posted

• Couriered

• Hand delivered.

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Payment Method Considerations

Understandably there can be some confusion around the payment date and when the credit can be claimed (also referred to as the ‘consideration’). GSTR 2003/12 clarifies when the ‘consideration’ is deemed:

Method of payment When consideration takes place

Cash When the payment is tendered (i.e. when it is handed over).

Cheque For the payer, when the cheque is posted or handed to the payee.

For the payee, when the cheque is received.

Credit Card For the payer and payee:

• Where payment is made in person, when the docket is signed authorising the transaction

• Where payment is made remotely (i.e. phone or internet), when the payer submits the credit card number and other details.

Direct Credit For the payer, the date of the transaction is authorised to take place via BPAY or EFT or Bank Transfer.

For the payee, when the payment is credited to the supplier’s bank account or credit card.

If you buy taxable goods and services that cost more than $82.50 your supplier must provide you with a tax invoice within 28 days after you request one. Tax invoices that contain incorrect or incomplete information are not valid. Sam

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Attributes of Invoices and Tax Invoices

There are key differences between tax invoices and invoices.

• A person/entity who has an ABN number but does not report GST will supply an Invoice.

• However, a person/entity who has an ABN and does report GST will supply a Tax Invoice.

The table below will assist you, but more information can be located at the ATO website www.ato.gov.au and search for the Rulings GSTR 2000/34 and GSTR 2013/1 in the legal database.

Attributes Invoices (GST)

Tax invoices (Supplies less than $1000)

Tax Invoices (Supplies more than

$1000)

Tax invoice is stated X X

Date of issue X X X

Name of supplier X X X

ABN of supplier X X

Name of recipient X X

Address or ABN of the recipient

X

Brief description of goods or services

X X

Quantity of goods or services X

GST Inclusive price X X X

GST portion X X

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http://www.ato.gov.au/



Bookkeepers’ Code of Ethics

When working as a bookkeeper, you should abide by the industry code of practice. The Institute of Certified Bookkeepers has produced a code of ethics which all members must abide by. Ensure you view a code of practice before commencing work as a Bookkeeper or BAS Agent.

@ Go to www.icb.org.au and click Membership and then Code of Conduct. Download and save a copy for your information.

Sales Transactions

A Quote enables you to record estimates of your items or services. A quote does not impact your stock levels. A quote can be converted into an order or invoice.

An Order is where no items or service have actually been completed or sold. If the order includes a deposit, then a transaction will appear in the Sales Journal. Item orders will appear in the Analyse Inventory window showing committed stock numbers.

An Invoice can be created before or after the goods or services are delivered. Stock levels and Accounts will be updated, including debtors.

Open – invoice is not paid in full. Or Closed – invoice is paid in full.

In this user guide we will just look at simple Sales Invoices.

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http://www.icb.org.au/



Sales Layouts

AccountRight provides several sale transaction layouts from which you can choose.

The sale layout you use will be determined by the type of business you have (e.g. manufacturing, retail, service), and whether a printed invoice is required.

There are five types of sales layouts you can use: service, item, professional, time billing and miscellaneous. The three most commonly used ones are:

Service

A service layout has a free-form layout so when you sell goods or services that are not part of your inventory you can type unique data in the Description area.

Item

Use the item layout for the sale of goods or services in the Items list, e.g. inventory items or non-inventory items (labour charges).

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Professional

This layout is like a service layout; except that some industries need to record the date when the service happened so a date column has been made available.

To set Sales Preferences

1. Go to the Setup menu and choose Preferences. The Preferences window appears.

2. Click the Sales tab to display the Sales Preferences.

3. Check that the following Sales preferences are ticked:

4. Click OK.

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Creating a Service Invoice

Service invoices are used to bill for services that are not included in your Items list.

In the following example, Stevenson & Co need to be invoiced for some special cleaning which is not inventoried.

1. Click on Sales in the Command Centre if you haven’t already

2. Click Enter Sales. The Sales window appears.

3. Start to type Stevenson in the Customer field until Stevenson & Co appears and just click on it in the list

4. Click on the Layout button and check Service is selected.

5. Click on OK

6. Check the Tax Inclusive checkbox is marked with a tick.

7. In the Invoice # field, enter 1001. This number will automatically be incremented by one when you create the next invoice.

8. In the Date field, enter 2/1/2018.

Enter Sales

Sales

Layout

Service

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Bank Reconciliations


Unit 11


Lesson outcomes


reconcile the bank account

recognise missing or incorrect entries

print the reconciliation report.

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Reconciliation

It is important to complete a bank reconciliation each month or more often if necessary. It ensures that the transactions you have entered in your MYOB accounting system match what has actually happened in your bank accounts. We will prepare a bank reconciliation for January.

This is Charlie’s Bank Statement for January 2018. You need to reconcile it with the entries in AccountRight.

NAB Bank 23 Pier Street Blackburn VIC 3130

Bank Statement

From 1 Jan 2018

Charlies Cleaning General Cheque Account Account Number: 19836

To 31 Jan 2018

Date Transaction Details Debit (Withdrawals)

Credit (Deposits)

Balance

01/01/18 Brought forward 7860.00

01/01/18 147589 125.00 7735.00

03/01/18 147590 175.00 7560.00

04/01/18 EFT Harris Lawyers 550.00

05/01/18 Deposit 2340.00

07/01/18 Bank Deposit 124.50 10,574.50

10/01/18 BPay Telstra 220.00 10,354.50

12/01/18 BPay Telstra 98.00 10,256.50

15/01/18 Direct to websites now 150.00

15/01/18 Bank Deposit 1500.00 11,606.50

22/01/18 Bank Deposit 1450.00 13056.50

28/01/18 Bank Deposit 1470.00 14526.50

31/01/18 Bank Fees 12.50 14,514.00

31/01/18 Closing Balance 14,514.00

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1. From the Banking Command Centre, click Reconcile Accounts.

The Reconcile Accounts window appears.

2. In the Account field, ensure 1-1110 NAB Cheque Account is selected.

3. In the Closing Statement Balance field, enter 14,514.00 which is the balance displayed on your bank statement as displayed on the previous page

4. In the Bank Statement Date field, enter the date 31/1/2018, then TAB.

5. Select the Withdrawals side of every cheque and payment on the bank

statement. (Click in the column to display or clear a .) Notice that Cheque 147595 has not yet been presented. Also, the BPay payment to Lumo at the end of January is not shown on the statement. It should be on the February bank statement.

6. Select the Deposits side for all cleared credits.

Closing statement balance Account

Bank statement date

Out of balance

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Something’s wrong as the Out of Balance amount is $12.50. Have we missed something? Yes, the Bank fees.

6. Click on Bank Entry at the base of the Reconcile window.

Bank charges and fees are entered in the top part of the window. Any interest earned is entered in the bottom half of the window. You do not have to use this window. You could enter these transactions using the Spend Money and Receive Money windows instead.

7. Click into the Amount box and type 12.50

8. Tab to the Date field and type 31/1/18

9. Enter the Expense account 6-1300 Bank Fees and check that the Tax Code is FRE

10. Type Bank Fees in the Memo field.

7. Click on Record

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The Bank charges appear in the Reconcile Accounts window and is automatically ticked. Out of Balance is now 0.00.

8. Click on Reconcile and the following window appears:

9. Click Print Report and Print to print the Reconciliation Report.

10. Click Reconcile and Reconcile again.

11. Click on Cancel to close the Reconcile window and return to the Command Centre.

Reconcile

Out of Balance

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Activity Task: Bank Reconciliation February 2018

Charlie has received the February bank Statement. You should carry out a reconciliation based on the following statement.

NAB Bank 23 Pier Street Blackburn VIC 3130

Bank Statement

From 1 Feb 2018

Charlies Cleaning General Cheque Account Account Number: 19836

To 28 Feb 2018

Date Transaction Details Debit (Withdrawals)

Credit (Deposits)

Balance

01/02/18 Brought Forward 14,514.00

01/02/18 147595 320.00

01/02/18 BPay Lumo 450.00

01/02/18 EFT - MYOB 1000.00 12,744.00

04/02/18 Transfer Freddies Florist Inv 1003 275.00 13,019.00

10/02/18 EFT – Hyde Computers 600.00 12,419.00

15/02/18 Automatic debit websites now 150.00 12,269.00

22/02/18 Transfer Stevenson & Co 550.00 12,819.00

28/02/18 Bank Fees 12.50 12,806.50

28/02/18 Closing Balance 12,806.50

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1. From the Banking Command Centre, click Reconcile Accounts.

The Reconcile Accounts window appears.

2. In the Account field, ensure 1-1110 NAB Cheque Account is selected.

3. In the Closing Statement Balance field, enter 12,806.50 which is the balance displayed on your bank statement as displayed on the previous page

4. In the Bank Statement Date field, enter the date 28/2/2018, then TAB.

5. Select the Withdrawals side of every cheque and payment on the bank

statement. (Click in the column to display or clear a .) Notice that Cheque 147595 is now presented. Also, the BPay payment to Lumo at the end of January appeared on the bank statement.

6. Click on the Bank Entry button and enter this month’s Bank Fees of 12.50

7. Look at Deposits in the MYOB system Reconcile Accounts window – there are none! Yet two appear on the actual bank statement. We will have to enter these in the MYOB system

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Mapping Matrix


Appendix B

Mapping Matrix

Elements of Competency and

Performance Criteria – FNSACC416

Element Performance Criteria Reference

1 Implement integrated accounting system

1.1 Implement general ledger, chart of accounts and subsidiary accounts according to organisational requirements, policies and procedures

Units 3, 4, 5, 8, 9, 10, 12,15

1.2 Set up customers, suppliers and inventory items in system to meet organisational requirements and reporting requirements of goods and services tax (GST)

Units 4, 5, 8, 9, 10, 15

1.3 Identify sources of technical help and use them to solve any operational problems

Unit 2

2 Process transactions in system

2.1 Collate, code and classify input data before processing

Unit 3, 4, 5, 6, 8, 9, 12, 15

2.2 Process wide range of cash and credit transactions according to organisational policies and procedures

Unit 3, 4, 5, 6, 8, 9, 12, 15

2.3 Use general journal to make any balance day adjustments for prepayments and accruals

Units 8, 9, 10, 11, 12, 15

2.4 Regularly review system output to verify accuracy of data input and make adjustments for detected processing errors

Units 8, 9, 10, 11, 12, 15

2.5 Perform end of financial year rollover Units 14, 15

3 Maintain system

3.1 Add new general ledger accounts, customer, supplier, inventory and fixed asset records are added as required

Units 5, 6, 8, 9, 10, 11, 13, 15

3.2 Maintain and update existing chart of accounts, and customer, supplier, inventory and fixed asset records and subsidiary accounts

Units 3-15

3.3 Customise chart of accounts to meet reporting requirements of organisation

Units 5, 6, 8, 9, 10, 15

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Mapping Matrix


Element Performance Criteria Reference

4 Produce reports

4.1 Generate reports to indicate financial performance and financial position of the organisation and for goods and services tax (GST) purposes

Units 7, 9, 13, 15

4.2 Generate reports that confirm that subsidiary ledgers and accounts reconcile with general ledger

Units 7, 13, 15

4.3 Generate reports that confirm that system’s bank account entries reconcile with bank statements

Units 7, 11, 13, 15

4.4 Establish systems and practices to ensure information is stored securely and according to legislative and organisational requirements

Units 3, 14, 15

4.5 Maintain secure record of all processed transactions for audit purposes

Units 3, 15

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